10-KPeriod: FY2022

TechnipFMC plc Annual Report, Year Ended Dec 31, 2022

Filed February 24, 2023For Securities:FTI

Summary

TechnipFMC plc (FTI) reported a revenue of $6.7 billion for the fiscal year ended December 31, 2022, a modest increase of 4.6% from the previous year, driven by stronger performance in its Subsea and Surface Technologies segments. The Subsea segment experienced a revenue increase of 2.5% to $5.46 billion, supported by higher project and services activity, particularly in Brazil and the UK, and a significant 36% rise in inbound orders to $6.74 billion. The Surface Technologies segment saw a more robust revenue growth of 15.3% to $1.24 billion, primarily due to increased operator activity in North America and resilient international markets. The company reported a net loss of $107.2 million for the year, a significant shift from the $13.3 million net income in 2021. This was largely influenced by a $27.7 million loss on its investment in Technip Energies and a $29.8 million loss on early extinguishment of debt, alongside other operational factors. Despite the net loss, the company's operating profit from continuing operations improved significantly year-over-year, with Subsea operating profit more than doubling to $317.6 million and Surface Technologies operating profit increasing to $58.3 million. TechnipFMC also announced plans to initiate a quarterly dividend in the second half of 2023, signaling a focus on returning value to shareholders.

Financial Statements
Beta
Revenue$6.70B
Cost of Revenue$5.79B
Gross Profit$907.10M
R&D Expenses$67.00M
SG&A Expenses$616.80M
Operating Expenses$6.50B
Operating Income$375.90M
Interest Expense$138.70M
Net Income-$107.20M
EPS (Basic)$-0.24
EPS (Diluted)$-0.24
Shares Outstanding (Basic)449.50M
Shares Outstanding (Diluted)449.50M

Key Highlights

  • 1Revenue grew 4.6% to $6.7 billion in 2022, driven by strong performance in both Subsea and Surface Technologies segments.
  • 2Subsea segment inbound orders increased by 36% to $6.7 billion, reflecting market recovery and growth in deepwater developments.
  • 3Surface Technologies segment revenue rose by 15.3% to $1.24 billion, fueled by increased drilling and completion activity, particularly in North America.
  • 4The company reported a net loss of $107.2 million for 2022, compared to a net income of $13.3 million in 2021.
  • 5Operating profit for the Subsea segment more than doubled to $317.6 million, and Surface Technologies operating profit increased to $58.3 million.
  • 6TechnipFMC has announced its intention to initiate a quarterly dividend in the second half of 2023.
  • 7The company ended the year with a robust order backlog of $9.35 billion, up from $7.66 billion in the prior year.

Frequently Asked Questions

TechnipFMC reported a total revenue of $6.7 billion, a 4.6% increase from 2021. However, the company experienced a net loss of $107.2 million for the year, a reversal from a net income of $13.3 million in 2021. This was primarily influenced by various one-off expenses and investment revaluations. The company's operating profit from continuing operations did show improvement, with the Subsea segment's profit more than doubling and Surface Technologies' profit also increasing.

The Subsea segment saw a 2.5% revenue increase to $5.46 billion, supported by higher project and services activity and a significant 36% rise in inbound orders to $6.74 billion. The Surface Technologies segment delivered stronger growth with a 15.3% revenue increase to $1.24 billion, driven by increased drilling and completion activity in North America and resilient international markets. Both segments contributed to an overall improvement in operating profit.

TechnipFMC anticipates continued growth in 2023, supported by an expected increase in upstream spending and energy demand. The company is confident in conventional resources' role in the energy mix and is actively pursuing opportunities in the energy transition. Notably, the company announced plans to initiate a quarterly dividend in the second half of 2023, signaling a commitment to returning value to shareholders.

TechnipFMC ended 2022 with a strong order backlog of $9.35 billion, an increase from $7.66 billion in 2021. The company expects further growth in 2023, with inbound orders projected to exceed $8 billion, particularly driven by a significant increase in integrated project awards within the Subsea segment.